Astec Industries, Inc. acquisition of RexCon LLC, one of the leading full-line concrete batch plant manufacturers in the U.S., will provide growth opportunities for both companies.
"ASTEC HAS A PHENOMENAL MARKET REPUTATION THAT WILL DEFINITELY OPEN NEW OPPORTUNITIES FOR US." —Adam Komornicki, Area Manager, RexCon
In the October 2017 acquisition announcement, Benjamin G. Brock, Chief Executive Officer of Astec Industries, Inc., stated, “We are very pleased to welcome RexCon to the Astec Industries family of companies. The acquisition of RexCon reflects our stated strategy to drive focused growth, both organically and through acquisitions of strong companies, that serve the infrastructure, aggregate and mining, and energy industries. RexCon is a successful, profitable company with a reputation for innovative technology and dependable quality products. We are a match culturally and in our approach to business. We thank the owners, Jake Jacob and Mike Redmond, for their collaborative efforts in finalizing this transaction, and we are pleased that they will continue to run and work to grow RexCon, as a part of Astec Industries, joining our Energy Group.”
RexCon is a U.S. manufacturer of high-quality stationary and portable, central mix and ready mix concrete batch plants, concrete mixers, and concrete paving equipment. RexCon specializes in providing portable, high-production concrete equipment to contractors and producers worldwide in a totally integrated turnkey production system, including customized site layout and design engineering, batch plants, mixers, water heaters and chillers, ice production and delivery systems, material handling conveyors, gensets and power distribution, cement silos and screws, central dust collection, aggregate heating and cooling systems, batch automation controls, and batch office trailers.
Adam Komornicki, area manager for the Burlington, WI-based concrete plant manufacturer, is excited about the advantages the acquisition presents.
“We have a common customer base with material providers and contractors involved in both asphalt and concrete, and we’re also seeing a consolidation of material suppliers and contractors positioning themselves as the provider of both products,” Komornicki says. “RexCon has been in business for more than 100 years and has been an integral part of infrastructure construction across the country.”
Manufacturing quality concrete equipment has been the key to building a strong reputation in the industry, and Komornicki notes that it’s not uncommon to find RexCon equipment built in the 1960s still operating today.
The synergy with Astec in not only having a strong reputation for manufacturing quality equipment, but also manufacturing similar equipment – to leverage the manufacturing expertise and purchasing power Astec has accumulated.
“More and more companies are losing their production specialists due to an aging workforce that’s retiring, and they’re not able to recruit workers with the same level of expertise,” Komornicki says. “RexCon and Astec have the expertise and equipment that allows plant operators and contractors to deliver high-quality mixes.”
Another significant advantage for RexCon is the added financial support Astec provides to increase production at RexCon’s 130,000 sq. ft. manufacturing plant.
“We had limited financial resources to build up our inventory of products and customers typically wait until the last minute to buy equipment based on what their upcoming season looks like,” Komornicki says. “Now, we can have extra inventory ready at the beginning of the construction season and that will give us an advantage over our competitors by drastically reducing lead times.” And as Komornicki also notes, “Astec has a phenomenal market reputation for delivering quality products and service. That will definitely open new opportunities for us here in the U.S. and worldwide.” More information on RexCon and its products can be found at www.rexcon.com